US 30 Index Hits New Record High – Latest Update on Action Forex
The US 30 cash index has recently reached a new all-time high, hitting the 41,740 level during Monday’s trading session. This milestone comes after the index posted several consecutive days of gains, showcasing a strong rebound off the 40,000 psychological mark. The price is currently holding near the upper boundary of an upward sloping channel, indicating a bullish trend in the market.
Technical Analysis and Market Outlook
From a technical standpoint, the stochastic oscillator is signaling overbought conditions as it begins to turn slightly lower above the 80 level. On the other hand, the Relative Strength Index (RSI) is rising above the neutral threshold of 50, suggesting continued bullish momentum in the market.
If the price continues its upward trajectory, immediate resistance is expected at 42,120, which corresponds to the 161.8% Fibonacci extension level of the downward wave from the January 2022 high at 36,950 to the October 2022 low at 28,580. Further upside movement could potentially push the index towards the next psychological level at 43,000.
Conversely, a decline below the previous high of 41,585 may lead traders to target the 20-day simple moving average (SMA) at 41,000, followed by the 50-day SMA at 40,500. A more significant drop could bring the index into a critical territory ranging from 40,000 to 42,000, where bears might look to take control of the market.
In summary, the US 30 index is currently establishing higher highs, reinforcing the long-term bullish structure of the market. However, a substantial drop below the 200-day SMA at 39,000 could potentially shift the outlook to a more negative sentiment.
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In conclusion, the US 30 index’s recent surge to a new record high reflects the current bullish sentiment in the market. Traders should closely monitor key resistance and support levels to navigate potential price movements effectively. Meanwhile, XM continues to provide a comprehensive suite of trading services to clients worldwide, ensuring a secure and efficient trading experience.
